Global economic turmoil and the risk of future economic crises make the Bank of Indonesia to be assertive in promoting the strengthening aspects of banking capital in Indonesia.After applying the rules of business and office networks based on the bank 's core capital ( multiple - license ) , Bank of Indonesia ( BI ) to review the implementation of Basel III , in which the banks have to raise additional capital .
" So we 're discussion with industry is this the right time to raise the capital that is associated with in accordance with Basel III capital buffers . This is for just in case situations more difficult then they need to raise capital , " BI deputy governor Halim Alam , told reporters in Jakarta , recently .
Basel III is a new global standard for the regulation of bank capital adequacy and liquidity . Basel III rules are made to respond to the global financial crisis , which showed deficiencies in global financial regulation . In the financial sector , Basel III does not just touch on prudential regulation ( relating to the precautionary principle ) micro-scale , but also the macro scale , because it can maintain the stability of the financial system .
Basel III requirements , including the need for banks to maintain a 4.5 % common shares and 6 % of core capital ( Tier I) of the burden of risk assets . Basel III also introduces a buffer ( buffer ) extra , like free countercyclical buffer , which allows national regulators set an additional capital of 2.5 % .
" There is no specified in Basel III regulations . This is a discussion with BI , "said Halim .
As known , the central bank has issued a multiple - license rules which limit the movement of banks in business , according to the capacity of capital . Thus , banks with insufficient capital to expand its network is prohibited massively , went into business risk is rated high .
BI divide the business activities that can be done banks into four groups according to the book called core capital . In the first book group business activities are very limited and traditional in nature , because the bank's core capital , only a maximum of Rp1 trillion . In the second book , the bank can do more business activity , as it has a core capital , in the range of Rp 1 trillion to Rp 5 trillion .
In Book III , activities to do more and more because the bank 's core capital is relatively large in the range of Rp 5 trillion to Rp30 trillion . The Book IV is the highest caste , where a bank can run the entire banking business as it has a core capital above Rp 30 trillion .